How Employee Analytics Helps Your Business Get More Productive?

  Published : September 16, 2024
  Last Updated: September 17, 2024
How Employee Analytics Helps Your Business Get More Productive

 

HR has been around for many years, but the department has predominantly focused on implementing HR systems and gathering performance data. Nobody really thought of analyzing all the gathered data and using those analytics to make informed decisions regarding talent and people management. Things are quite different now, and many organizations are realizing the significance of employee engagement analytics in creating favorable employee experiences.

However, employee analytics isn’t just a question of gathering some data and studying it. The process can be challenging, especially if HR doesn’t possess the right tools to extract relevant information. Let’s get into it together, shall we?

Understanding Employee Analytics

According to Gartner, employee analytics is the process of applying an “advanced set of data analysis tools and metrics for comprehensive workforce performance measurement and improvement.” Quite a mouthful, but we can simplify it even further.

Employee analytics includes gathering, studying, and decoding employee data to enhance decision-making, improve productivity, and create a better work culture.

Employee analytics is often mislabeled as workplace or people analytics, but there are considerable differences between them.

People analytics looks at HR-specific processes and techniques with a focus on maximizing the return on investment (ROI) for each employee. Workplace analytics, on the other hand, studies employee productivity, effectiveness, and engagement.

Employee analytics takes into account both aspects of an organization and its relationship with its employees to gauge overall employee experience. In most companies, employee analytics looks at metrics, such as Attrition, Engagement, Productivity, Training and Development, and Compensation and Benefits.

Why Is Employee Analytics Important?

An organization might have a specific reason for measuring employee experience, but generally, the benefits include:

  • Reduce turnover rates: Businesses can understand the reasons for employee attrition, whether voluntary or involuntary, and work to keep their people happy and engaged.
  • Help make better decisions: Armed with the right knowledge, managers can identify areas that need improvement and make better decisions.
  • Improve business performance: Businesses with better employee experiences enjoy higher customer satisfaction and make 25% higher profits.

Types of Employee Analytics

If employee analytics is the study and improvement of employee experiences, gathering data in this vast field might seem daunting. Not if you break it up into various types. Here are a few common examples of employee analytics:

Employee Attrition Analytics

Employees leave an organization voluntarily, by resignation, retirement or, or involuntarily, where an employee is asked to leave through elimination, layoffs or restructuring. Employee attrition analytics is an indication of how quickly your people are exiting your organization. Unless it is a cost-cutting tactic, employee attrition analytics can highlight problems within your organization.

Employee Benefits Analytics

64% of workers say that benefits are a crucial factor in deciding whether to stay at a job. Some of the more common benefits include health insurance, paid time off, retirement savings or contributions, family and medical leave, disability and life insurance, etc. Millennial workers also look for mental health support, training and upskilling, and wellness programs while considering an employment package.

Employee Engagement Analytics

Employee engagement is critical to business success because involved, enthusiastic and committed employees bring their best to their work and the workplace. Engaged employees impact operations, customer satisfaction, company culture, productivity and eventually profits. Unfortunately, not all employees are actively engaged at the workplace, and businesses are quickly realizing the benefits of tracking and boosting employee satisfaction.

Internal Communication Analytics

Creating open lines of communication can play a significant role in employee experience. Effective internal communication allows employees to feel connected, informed, and engaged with corporate news and information. They are in line with the organization’s mission, vision, and goals. And lastly, they have the tools to perform their tasks successfully. Organizations need to create a communication strategy that best fits their workforce, depending on their location and responsibilities.

Training Efficiency Analytics

Training, development and upskilling are crucial programs that have been known to keep employees engaged. However, it is important to choose the most effective training and development program, keeping in mind the cost and effort investment. Deploy metrics that will help gauge the efficiency and run programs that deliver maximum ROI.

Onboarding Speed Analytics

Studies have shown that successful onboarding can boost employee performance by 15%. If done right, a good onboarding program can improve employee satisfaction, reduce employee turnover and boost employee performance. However, the most important metric is faster organizational contributions. The quicker a new employee feels comfortable, the faster their contribution to the organization.

Efficiency and Productivity Analytics

Engaged and motivated employees will perform better than their counterparts. Organizations can improve the efficiency of their employees by providing them access to essential job-related information, aligning them to company objectives and empowering them to make decisions to improve the workplace.

6 Key Aspects of Employee Analytics

The benefits of employee analytics are undisputed. However, the undertaking must be done strategically and with care. After all, it involves employee personal data, salary details, and performance history, and businesses ensure it is done ethically.

Here are a few key aspects of employee analytics to keep in mind.

  • Prioritize Data Privacy: Protecting employee data builds trust, crucial to creating goodwill and willingness to adopt the program.
  • >Collect Relevant Data: Stick to collecting data that supports organizational objectives and doesn’t open the doors to legal or reputation risks in case of any breach.
  • Market the Program Appropriately: Ensure employee buy-in by showcasing the many advantages, such as improving employee experience and empowerment.
  • Share Findings and Insights: Involve managers and other employees in decisions stemming from the findings of the process.
  • Align Employee Analytics with Business Goals: Define the program objectives by keeping in mind employee analytics goals that drive business outcomes.
  • Use Data for High-level Solutions: Use employee analytics to solve workforce problems and not micromanage employee behavior.

Also Read: Employee Behavioral Analytics in the Modern Workplace

Conclusion

Employee analytics has been instrumental in improving workforce performance for many organizations and more businesses are realizing its importance. Today, over 70% of companies rely on employee analytics, and 65% of employees in organizations with a deep people analytics culture believe their companies outperform the competition.

Frequently Asked Questions

Q1. What is Employee Engagement Analytics?

Happy employees are motivated employees. The technique of studying how happy, safe, valued, supported and healthy employees feel is employee engagement analytics. This stems from the idea that employees are people, with lives outside of work. This approach involves numerous metrics upon which to gauge their levels of commitment, enthusiasm and satisfaction at work.

Q2. How Does Employee Analytics Improve Productivity?

Good employee engagement has a direct positive impact on workforce productivity. Engaged employees demonstrate higher morale, are motivated and take the initiative. Furthermore, they are eager to collaborate, thus building a culture of teamwork. Lastly, engaged employees are less likely to leave, bringing down recruitment and training costs.

Q3. What Are the Types Of Employee Analytics?

Employee analytics is a vast field and the study and improvement of employee experiences can be broken up into:

  • Employee Attrition Analytics
  • Employee Benefits Analytics
  • Employee Engagement Analytics
  • Internal Communication Analytics
  • Training Efficiency Analytics
  • Onboarding Speed Analytics
  • Efficiency and Productivity Analytics

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